Google's Consent Management Platform Requirement: Implications for Game Publishers

In the ever-evolving world of digital technology, user privacy has taken center stage. Google, being a pioneer in the digital space, has unveiled its Consent Management Platform (CMP) requirement. At their core, CMPs are designed to assist publishers in managing user consent concerning data collection and processing. But what does this mean for the mobile gaming industry? Let's delve into CMPs, their potential financial impact, and the steps mobile game publishers should consider.

Understanding Google's Consent Management Platform (CMP) Requirement

The Consent Management Platform requirement is a solution introduced by Google to help online businesses, including mobile game publishers, comply with data protection regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S.

CMPs provide a systematic way for publishers to collect, store, and update user consents related to data processing activities. For mobile game publishers, this means having a standardized method to communicate with players about how their data is being used and ensuring that players have a straightforward way to give or withdraw consent.

One step further: Opt-in consent is now required.

Google as gone one step further with their requirement for a CMP. All partners of Google products, including Ad Mob, will have to integrate TCF 2.2 (the transparency and consent framework by IAB). Game publishers will now have to work with a Google-certified CMP, and TCF 2.2, which removes legitimate interest for creating and using profiles for personalised advertising and personalised content. In very real terms; You have to ask for and obtain consent from T1 EU economic region users before you can show personalised advertising. Effectively this is ATT for the most valuable users in Tier 1 countries, just on Android not IOS.

Implications for the Mobile Gaming Industry: Is the Party Really Over?

Enhanced user trust is a significant implication, players are becoming more vigilant about how their data is used. Implementing a transparent system like a CMP can bolster player trust, leading to longer user retention and positive association.

There is, however, a potential impact to monetization strategies. Many mobile games rely on targeted advertising for revenue. With a CMP in place, not all users may consent to data collection. This could result in a decline in ad revenues, prompting publishers to explore alternative monetization strategies, such as in-app purchases or subscription models.

Lastly, the design and user experience (UX) might undergo some changes. Integrating CMPs might require redesigning parts of the game's user interface. Consent forms need to be clear, understandable, and easily accessible, ensuring the gaming experience remains seamless.

Financial Impact: Have You Heard This Before?

There may be an increase in development costs. The integration of CMP tools and the potential redesign of user interfaces can raise the upfront development costs for game publishers.?

The biggest impact that the introduction of a CMP may lead to is a potential drop in ad revenues. As highlighted earlier, if a significant portion of users opt out of data sharing, the ability to serve personalized ads diminishes. Currently on Apple’s IOS the institution of ATT resulted in a 75% opt-out rate, effectively eliminating data collection and advertising personalisation on three-quarters of game users. Consequently, eCPM (effective cost per mille) rates might drop, leading to reduced advertising revenues.?

However, it's not all potentially negative. There are opportunities for new revenue streams. With the potential decline in ad revenues, publishers have an opportunity to innovate and find more direct ways of monetization, say the utilization of app first-party data, which could prove to be more lucrative in the long run.

Advice for Game Publishers and Developers

Integrate a CMP and begin the investigation of alternative monetisation solutions now.?January 16th is coming fast and it looks as though it will be a hard deadline

Although CMP requirement has been in the works for some time and has seen delayed implementation, it is not going away and will have a significant impact upon your game's performance and revenue generation on Android devices.

When integrating a CMP, it's essential to ensure that the user experience isn't hampered. Consent forms should be unobtrusive and easy to navigate. It's crucial to communicate with the player base. Make them understand why these changes are necessary and how it benefits their privacy. User experience should always be a top priority.?

Additionally, publishers should consider diversifying their monetization strategies. Sole reliance on ad revenues can be a risky proposition. Exploring different monetization methods, such as in-app purchases, utilization of first-party data, premium versions, or partnerships, can provide more stable revenue streams.

Staying updated on regulations is also crucial. Data protection regulations are continually evolving. Ensuring compliance by staying updated on any changes in regional regulations is paramount for any game publisher. Investing in data analysis is equally important. For users who do consent, extracting maximum value from this data by investing in analytics can provide valuable insights to enhance gameplay and user retention.

Lastly, collaboration with industry peers can be of immense value. Joining forums, attending conferences, and engaging in discussions with fellow game publishers can provide mutual benefits. Sharing experiences and strategies can be an excellent way for game publishers to navigate the CMP landscape effectively.

Conclusion

So is it really game over?

Google's Consent Management Platform requirement, while initially seeming like another challenge to making money from your hard work, could be a blessing in disguise for the mobile gaming industry. It emphasizes the importance of user trust and offers an opportunity for the industry to innovate and evolve. As with all shifts, adaptation and forward-thinking are key. Game publishers who embrace this change and strategize accordingly will likely find themselves thriving in this new era of digital privacy.

Nefta's innovative ad network can unlock the value of your IOS opt-out users. Publishers can increase ARPDAU by generating higher eCPMs on opt-out users. Marketers can get more installs and a higher ROAS by delivering their campaigns to opt-out users. If you'd like to know more visit nefta.io or reach out in a DM.

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